Is This the End of Home Ownership as We Know It?

If the government gets its way, it will soon make it nearly impossible to own a home, or worse yet, the values of real estate will diminish even more so.

1. Government-Sponsored Enterprise (GSE) created by the Bush administration but made worse by the Obama administrative (stupidity has no political boundaries) in which the government, in its political wisdom, bailed out Fannie Mae and Freddie Mac to place the U.S. (that’s us, folks) in more debt and created a near impossibility for “Joe the Plumber” or any other average Joe or Joanne, to obtain a mortgage.

2. The House failing to extend the FNMA & Freddie Mac loan limits Guarantee fees are charged by loan guarantors prior to bundling mortgages into securities. Introduced by Senators Robert Menendez, (D-NJ) and Johnny Isakson (R-Ga.) as the Homeownership Affordability Act of 2011, therefore reducing it by over 100k, (which may work in mid-America but not on either coasts) http://realtormag.realtor.org/daily-news/2011/09/19/house-fails-vote-extending-loan-limits.

3. Strong consideration limiting the downpayment of a home to no less than 20 percent.

4. And maybe the biggest kicker, the government diligently to pass the end of the mortgage interest deduction in some form.

The combination or individualization of wither of the above, plus the desire of banks to get into the real estate business (which luckily was voted down never to return in the near future), affects the entire real estate industry from the homeowner, home-seller, homebuyer and the parties involved with the transactions, as well as the trickle down and up affect of the economy as a whole.

The affect of the housing market as a product of government intervention will bring down values.

As it is harder (and may be impossible) to get a mortgage if you have less than 20 perecent down, or limiting loan limits, and especially the demise of the mortgage interest deduction (which as of today’s thinking may affect those who are making 250k or over–but remember once that is passed be ready to include everyone else), and the inherent value that brings to home-ownership coupled with the soon to be foreclosed property floodgates ready to open, what is your government thinking? Their thinking is simple. As they sit in their large homes, getting paid by us, the constituents, with health benefits for life, they have no other answers to the country’s economic situation. Instead they take the easy way out and have those that acquired that American Dream and turn it into a nightmare. 

So you are saying how do I “fight for my home ownership rights?" Sure you can stand on your porch with your shotgun like they did in the wild west (that just ain’t goin' to work, pardner). Instead, contact your representative and make a stink about it. It is your duty to protect what is yours.

Your local Realtor is also in the fight for the homeowner through the Realtor Political Action Committee (RPAC). This extremely influential PAC, locally, state, and nationally, continually fights for the rights of homeowners. The monies that have been collected from the Realtors contributions have been instrumental in keeping the banks out of the real estate business, keeping the Realty transfer tax of NJ at a lower rate than originally proposed, local signage rulings and so much more that has kept homeownership alive and well, and available for all those who can buy the Dream.  Yet not all Realtors contribute to the cause even though the very existence of their careers and forthwith, preventing home ownership as we know it, from going the way of the dinosaurs. Ask your Realtor if they contribute to RPAC.  If they do then they care, if they don’t, change Realtors. They obviously are not in it to preserve what is right for you and your homeownership rights.   

Have any questions or comments, please respond below or contact me directly at jeff@mycoccia.com

Jeffrey David Halpern,  Broker-Sales Associate

Coccia Realty, Inc., Madison